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tv   [untitled]    June 2, 2011 10:30am-11:00am PDT

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the public sector is serving as that bridge. it is a way of getting individuals who may not have found a job through limited skills or work history, get them the skills, whether it is administered of assistance or maintenance -- administrative assistant work for maintenance -- or maintenance. to get them a job in the private sector. it is not meant to be a permanent job. it is meant to be an opportunity to make some money, to put money in the hands of families to desperately needed, as well as get job skills. >> [unintelligible] >> that is exactly right, barbara. folks who were coming to offices who had the better resume or more jobs skills tend to be the ones who moved to the private sector. it is important to remember, the employer is actually doing the
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interviewing. we are not giving -- barbara taylor, here is your job. you take it. we go to the candidates and select the ones with the skills and experience that matched the job they are being hired for. so, it is a competitive process within the context of folks who are eligible for the program. the private sector is the best outcome. private sector, and subsidized. the folks in public sector placement -- private sector, unsubsidized. the folks in public-sector placement and nonprofit placement, we hope it will get to the private sector side. >> [unintelligible] >> we actually have an expanded program for single adults to have children over 18 or who do not have children. a portion of the money is general funds. we are able to target our folks who are on -- public assistance
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who do not have kids. correct. what we are focusing on in jobsnow2 is single-family is who are on public assistance. jobsnow1 was a broader range of individuals who were eligible. now we're focusing on the city's public assistance rolls. we of about 5000 families on public assistance -- we have about five dozen families on public assistance in san francisco. -- we have about 5000 families on public assistance in san francisco. >> [unintelligible] if you sign up for the program, do you [unintelligible] is it a pool of set people? >> we have a pool of people who are employment specialists who
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are engaged in that job placement process. certainly, given the volume, given the number of people, there is a big enough job pool where employers can select from, can select appropriate candidates. and what the person's behind me mentioned -- we do internally audit that' work, providing the transportation, cloves, child care support -- clothes, child care support. that is in our regular welfare program. >> [unintelligible] >> sure, barbara. >> [unintelligible] the city has this giant deficit, so -- >> sure. luckily, three-quarters of the human services agency budget is
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from state and federal sources. $8.9 million is from federal and state programs. what we have been able to do is re-engineering our system to move away from some source of contracts and job work and move it more towards what we have found it to be a very successful model, the jobsnow model. the other $1.2 million are nhs funds in the budget. it was something of a priority because it was effective. we were able to move money around to more successful programs. so, we did not seek additional funding for this program. we did in our current budget. >> [unintelligible] there is a group of homes that were picked today, taken over, because there is not enough
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housing for the homeless. is this an open ended response to that? >> you've been covering the homeless issue, caroline. -- carolyn. would i like their to be housing for everyone in san francisco? of course. we place about 35 homeless people into permanent supportive housing every month. our existing portfolio, we have turnover. the answer to that problem is not taking over someone's house and swapping. the answer is to engage in our programs and get in queue to get a home that will eventually become available. >> thank you. [unintelligible]
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>> thanks for all of you being here. in january when i was sworn in, there were five major objectives that i wanted to accomplish. a pension reform was at the top. as i went through all of the town hall meetings on the budget, i indicated to the budget -- to the public that we needed to fix our financial house in the city. at the beginning of this conversation when he leaves started meeting, we had choices
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to make right at the beginning. the choices included whether or not we're going to hold out for months finger of blame -- claiming for what occurred. or whether we would get to work and at the numbers tell us what we needed to do. as precisely what we set out to do and allow those numbers, the numbers that we have been quoting as the numbers we had to attack. the financial house of the city , it would allow ourselves to focus as we have done. i like to thank the people that are standing beside me as well as the ones in the back of me having spent quality time in coming up with a consensus, a comprehensive plan that we believe will fix the problem for the long-term. i'm happy to announce that we
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have at least a sponsor's if not more to present this pension proposal to the board going through the rules committee and eventually the full board for the ballot. having said that, i want to emphasize that this proposal is comprehensive. it looks that not only the numbers that have been talked about with all of the press and all of you, the looks of the programs that we have put in place. and we have been contributing to a program that we have not been able to afford in a number of years. and also do it in the fashion that provides a dignified attention to those that have contributed many of their years of this wonderful city. i am proud to say that in working on this, we also have the choice about whether or not
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we would do it as a government or do it as a collaboration of people that were concerned about working families in this city. and making sure that we talked to everybody and had every voice heard. we start in january up to now 4.5 up to five months of a concerted effort to reflect a comprehensive approach. it reflects a dialogue that is transparent. it reflects labor leaders, officials, the private sector as long as regent as well as the non-profit sector contributing about how the city can work together to make sure that we have a solvent pension system before us. we're looking at the system not just for the short term, but for the long term. we have ever imposed that we believe will save the city between 800 and billion dollars
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in the next 10 years. allowing the pension system to be solvent during those years and wander into the future. as you know, reforming pension alone will not ensure that the city will be fiscally sound. i've also been working hard to balance the budget and we will be a announcing those measures next week as we report to the board of supervisors. have committed ourselves to doing five-year budgeting and five-year financial planning. that has also been very helpful to understanding how the pension system works and how it is part of the fiscal soundness of the city. it is painfully evident that not just in san francisco but every city across this country has been facing the pension system and making sure that that challenge is confronted.
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in different cities have different approaches. with a voice of the san francisco would have a special approach. that is the consensus in bringing everybody under the tent to talk through what these numbers mean and what we can do to contribute. a lot to thank all of the people who stand beside me as well as those that have initially signed on the include all of the supervisors here today. this proposal ties back into investing in our neighborhoods and our communities. as i have said many times with this of the city, we can make city services increase and be maintained as well as proper investments to keep families in our city. is a halt what i want to reemphasize a consensus proposal levels in the city
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leaders, business, community in the nonprofit [unintelligible] no matter what level of work you have in the city, we will contribute to the solution. we're seeking long-term reform in this proposal in the form of new and lower benefits that we have yet to hire and immediately relief in the form of current employees for the existing level benefits that we apply. it is important to show in this consensus plan that its comprehensiveness will be reflected in its ability to provide pensions biking, caps pension benefits, it raises the retirement age, it requires existing in the new employees to share health care costs. and it uses a sliding scale to protect lower wage earners of our employee group.
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if it does probably the most important thing that other pension plans you've been reading about the not do. a requires a greater contribution to the health trust fund. finally you have questions about the other plans. and i will say to you that the other plans that may be have been developed under closed doors and with smaller numbers of people have not had the transparency that this process had nor has it been reviewed ha literally or with all the different actuarial reviews. the actuarial and the private sector as well as ours in the controller's office and those that we have hired and certainly have passed muster with the city attorney's office. have included the months that, representatives of the labor unions, moderates and progressives. the downtown business
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representative as well as members of the board of supervisors. i would like to recognize the tremendous effort that supervisor elsbernd has given to this process since day one. [applause] and i know from the very first day that we met and talked about this, there was a healthy level of cynicism that was displayed. one that was probably a arrested with a lot of things that have gone proper for many years. the really keen look at what the retirement system wasn't doing. and as it was brought up with others in the discussion, we got better and better at allowing him members to speak to us. when you take into account of the health contributions in the
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pension contributions, we have a serious comprehensive plan that is reflecting the consistency -- the consensus. it is important that we don't leave people behind. and we have done that. our plan is fair and is responsible. protect city services, and it ensures that our workers can retire in dignity and continued access to health care plans across the rest of this exceediy less affordable. >with that, i would like to welcome to this podium someone we have been working very closely with. come out for us. [applause] >> thank you, mr. mayor. they did make me promise not to play the banjo. [laughter]
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so that will not happen. this is truly an historic day for san francisco. we all worked on this. to think -- in the mayor touched on this point -- this is a huge nationwide problem it is being approached in various ways. adversarial, dictatorial, some cooperation. it is really in san francisco we have been able to come together. i do not want to belabor the point because it has been made, but we have taken the lead nationally and a plan -- in a plan that has majorly contributed -- that has been majorly contributed to by the unions in our city, the administration, and a number of other sources. i think there will be real
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surprised nationally when they see san francisco taking the lead. so, i am thrilled. i keep thinking i belong to some native american tribe. thank you. thank you all of you, for what you have done. i am thrilled to be part of this. thank you. >> that held the senate on the board of supervisors, -- cynic a on the board of supervisors, sean elsbernd. supervisor elsbernd: thank you, mr. mayor. the mayor was right there behind all the numbers in every nuance, and really throughout the process.
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i cannot tell you how much i appreciate that. let's thank mr. helmland. here we are. admittedly, i was a cynic. i was not sure this process would deliver. it absolutely has. this is a real reform. this is a real proposal that every single san franciscan can be proud to support come november. i think it is important to state we will save up to $800 million over the next 10 years. that is real sacrifice from our public employees. this is our current employees stepping forward and making real sacrifices. individual families will be sharing the burden. that is something that needs to be recognized and shown tremendous gratitude. i fully expect the voters in
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november will show that gratitude. i know the members of the board who are here appreciate that. so, thank you to the mayor. thank you to the public employees who are here for stepping forward. [applause] mayor lee: part of this effort has been a new found relationship between the mayor's office and the board of supervisors. we cannot do it without leadership from both sides, lowering everything from egos to pass the blame and getting through the work of the city. i want to thank president david chiu for helping to lead this on the board. each time i met with individual members on the board, the wool idea of the pension was always an update. i want to thank all of them for their contributions, for their
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ideas, for keeping things moving forward, and their positive attitude for a very complex and comprehensive challenged that we had. supervisor and for president david chiu. president chiu: good morning. today is a great day to be a san franciscan. this is the day we shall we are not washington, d.c. we show we are not sacramento, gridlock's for decades and drowning in liabilities. this is the day that we show we're not wisconsin and trying to blame things on our workers. i want to thank everyone for coming together. mayor lee, spots to vote for putting this at the top of the priorities -- thank you for putting this at the top of the priorities. warren helmand. i want to thank all our brothers
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and sisters from labor. not only have they been at the table for months, helping us put this together, but our employees are going to be giving up thousands of dollars every year person. i do not think we can forget that. we have to thank over and over again our workers for stepping up and being part of the table. i not only want to thank our colleagues, but i want to thank supervisor elsbernd, who has made this his passion. he has educated us over the years, bring us together. on behalf of the supervisors, we look forward to making sure san francisco is with us and make sure that we will ensure the health and safety of our residents. thank you very much. [applause] mayor lee: we had to be guided by a level of expertise and
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everything that we did. i know the hardest working entity that helped all the groups come together, recognize what we had to do, has been our department of human resources. kudos to you for all the expertise, the insights, the guidance you what had. what works and does not work, what could be negotiated, what had to be left on the side for future consideration, what could be done immediately. all those things were guided by strong expertise in the city. i want to personally wantmickey and martin fourth -- i want to personally thank mickey and martin for sacrificing so much personal time. you of done a wonderful job. come on up. [applause] >> thank you, mr. mayor.
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i appreciate it. i will not repeat all the things, except to acknowledge our wonderful staff. stick your hands in the air as well. thank you. the themselves will also be contributing in the cost sharing. and of course, it has been wonderful to come together with labor in the city, and the way we do with especially in san francisco. i get to do what some people regard as the more boring parts, which is actually talk about what we did. as the mere mention, -- as the mayor mentioned, a keystone of this program is cost sharing by employees. that is giving us an immediate release starting at approximately a year from now in fiscal year fy2012-2013.
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the cost sharing will depend on the health of the pension fund. real contribution rates, and based on the level of employee earnings, they will assist the city. it will become the employe e contribution. we cannot projects what our -- we cannot predict what our pension rates will be next year, but they certainly will not be going up and our employees will be part of that solution. that is where the bulk of the savings come from, that $800 billion is not cost sharing. we are different in that our model the employees to benefit when the rates do drop. we hope they drop sooner rather than later. what we are doing is moving to a
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shared growth model. shared risk, shared benefit periods -- shared risk, sure benefit. they will benefit, as the city does, when the rates are ultimately reduced. in addition to the cost sharing, and let me also mention, the cost sharing follows a model that excludes the people who earn less than $50,000 a year. then there is a graduated bonus, reflecting the fact that they do have a more expensive pension plan. our plan also includes employees who are not in the retirement system. we have approximately 8000 city employees in the california pension system. they will be participating by three different methods. the details -- we have some
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months to work out, because they are extraordinarily complex. we are happy that our brother and sister employees will be joining us in the program. we have new retirement tears. -- tiers. we are raising the minimum age at which one is eligible for retirement. this will encourage employees to stay longer. which not only reduces pension costs, but will reduce our costs for retiree health care. when people retire, we pay for their health care, and also for the health care to replace them. so, it is a two-for-one in that regard. on public safety, the retirement age is raised to 58 spurious -- to 58. we have a pension double salary
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cap which is 75% to 85% of the irs base. i can go into detail. . very complex. we are moving to a final compensation. for new hires, so the final pension will be calculated for new hires a son their three highest years, another fine a one-year -- not their final one year. we are eliminating what has been known as the best in retirement, also known as the annuity program, for new hires. instead we will of the service retirement option which is approximately half the cost. we're very pleased about that as well. supplemental, which is paid when the funding has earnings in excess of that which is predicted, will now be paid only
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when the fund is healthy enough to pay them. so, the fund will have to be fully funded to pay those supplemental cost. they will continue to be shared in payoffs, but only when the fund can afford it. also, our elected officials will be joining us in the cost sharing and paying their own retirement contributions as well. [laughter] and i'm sure they are happy about that. the health service board is in a very contentious issue because the city has wanted to move to the model from 2004. i would call the city appointee's beneficiaries of the fund. after much struggle, we have come up with the new model. the members of the health service board will be made up of 3 beneficiaries, members of the
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trust, three city appointees, and they will choose a tie- breaker, if you will, the denominates by the comptroller. we're very happy with that compromise solution. that as a part -- a very large part of the increase in our health costs. a lot of that has to do with the decisions we make in terms of our health coverage. we are also, as mayor lee mention, already we're requiring people who hire -- people who were hired since january 2009 to contribute to retirement. it is an unfunded liability. did not pay for the health care they promise to their retirees. we started doing that in 2009. now, we will begin contributing in our wrap up, and acting
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